Model Y

The Tesla Model Y is an all-electric compact crossover SUV, which means a tall hatchback with a roomy cabin and easy entry, and it became the best-selling vehicle of any kind on Earth. Tesla unveiled it on March 14, 2019, started deliveries in March 2020, and within five years made it the first electric car ever to outsell every other vehicle on the planet.

What is the Model Y?

The Model Y is the taller sibling of Tesla's Model 3 sedan, a five-seat electric SUV that seats you higher and adds a hatchback for hauling gear. The idea was simple: take the space and the higher ride people want in an SUV, run it entirely on batteries, and price it where ordinary families shop. In the United States the 2026 lineup has five trims: Standard rear-wheel drive (RWD), Standard all-wheel drive (AWD), Premium RWD, Premium AWD, and Performance. In July 2026 Tesla added the Model Y L, a longer six-seat version first sold in China.

Why the Model Y Exists

The Model Y exists because building a new car from scratch is slow and costly, and Tesla wanted neither, so the SUV shares about 76% of its parts with the Model 3. That one decision let Tesla reuse the same tools, suppliers, and assembly lines, which cut the cost of developing it and let production ramp up fast. The taller body handled the rest, adding the higher seat and the hatchback room the sedan could not give you. The goal, as Elon framed it at Tesla, was a do-everything crossover that regular buyers could actually afford.

How it Works

Underneath, the Model Y is a skateboard: a flat battery pack under the floor, one or two electric motors, and software tying it all together. The RWD trims use one motor, while the AWD trims and the Performance add a second motor for grip and speed. The newest Performance version makes 460 horsepower and tops out at 155 miles per hour. The easiest way to feel the difference between the trims is off the line, where the gap is big.

The Performance reaches 60 miles per hour in 3.3 seconds, less than half the 6.8 seconds the Standard RWD takes. The 2025 "Juniper" refresh, the codename for the mid-life update, brought a restyled front and rear, full-width light bars, a quieter cabin, cooled front seats, heated rear seats, a slipperier shape, and a small bump in range. And because software updates arrive over the air, like an update on your phone, the car you park tonight can be better in the morning.

The Economics of the Model Y

The Model Y is Tesla's highest-volume product and the workhorse of its car revenue. Because it shares so much with the Model 3, every cost saving spreads across millions of cars at once. Prices run from $39,990 for the Standard RWD to $57,990 for the Performance, before a $1,390 destination fee.

The Environmental Protection Agency (EPA) rates the $45,990 Premium RWD at 357 miles, the longest range in the lineup, and the cheaper Standard RWD at 321.

Current Status of Model Y

Giga Shanghai built its 1 millionth Model Y in July 2023, and Fremont reached the same mark in October 2024.

In its first-quarter 2021 update, Tesla told shareholders it expected the Model Y to become the best-selling vehicle of any kind in the world. It became exactly that in 2023. In 2024 it finished a close second to the Toyota RAV4, 1,185,000 to 1,187,000, according to JATO Dynamics. The Model Y is built at four factories, in Fremont, Shanghai, Berlin, and Texas, and in the third quarter of 2026 it and the Model 3 made up 98% of Tesla's 486,532 deliveries.

What Comes Next

The next change is size. The Model Y L, a longer six-seat version for families who need a third row, launched in China in August 2025 from 339,000 yuan (about $47,000) and went on sale in the US on July 2, 2026 at $61,990 for the Launch Series, with deliveries scheduled from October 2026.

The Bottom Line

The Model Y showed that a shared design, four factories, and steady scaling could make an electric SUV the best-selling vehicle on Earth.